Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

FMCG & Banking Stocks Underperform
Fri, 23 Sep 01:30 pm

Indian Indices have continued to remain listless during the post-noon trading session amid mixed global cues. Barring FMCG & banking stocks, major sectoral indices are witnessing buying interest with stocks from realty, oil & gas leading the pack of gainers.

The BSE Sensex is trading lower by 29 points (down 0.1 %) while the NSE Nifty is trading lower by 8 points (down 0.1%). The BSE Mid Cap index is trading up by 0.6% and BSE Small Cap index is trading higher by 0.7%. Gold prices, per 10 grams, are trading at Rs 31,219 levels. Silver price, per kilogram is trading at Rs 47,198 levels. Crude oil is trading at Rs 3,068 per barrel. The rupee is trading at 66.62 to the US$.

As per an article in Business Standard, Larsen & Tourbo has bagged an order from Vietnam Border Guard for design & construction of high speed patrol vessels. The contract is valued at US$ 100 million.

The contract also provides for L&T to transfer design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. The contract provides for supply of 12 vessels. These would be delivered over 30 months.

In keeping with the government of India's Make in India policy, complete design and engineering of the vessels will be undertaken at L&T's dedicated Warship Design Centre with the vessels being built at L&T's state of the art Kattupalli Shipyard, off Chennai. The company also recently bagged orders worth Rs 17.26 billion across various other business segments.

Diversification continues to help L&T (Subscription Required) negotiate and get better terms and margins for projects. Apparently, this is because it is less desperate to win orders as compared to a company which are present in only a couple of sectors. Its reputation, extensive technical prowess, and large skilled workforce have enabled L&T to command a certain premium from customers and vendors alike. Whether, further addition to these new projects provide a cushion to its profitability will be an interesting thing to watch out for going forward.

Meanwhile, shares of L&T Technology Services Ltd, a subsidiary of L&T debuted at a 4.7% premium on the stock market today. The issue was subscribed 2.52 times earlier this month.

The category reserved for institutional investors was subscribed 5.01 times, while the retail investor and high net-worth individual categories were subscribed 1.75 and 1.03 times, respectively. L&T sold a 10.2% stake in the subsidiary, which will fetch the company Rs 8.9 billion at the upper end of the price band.

An IPO is the most tempting vehicle to realize every investor dreams of making a lifetime of money. Most IPOs, however, fail to hit the mark. So, instead of getting influenced by the frenzy, investors should analyze well in order to avoid any pain in the future.

Last week we promised you a special handbook on IPO investing. The wait is finally over. Without further ado, we would like to present Equitymaster's Handbook of IPO Investing (with special focus on never before Insurance IPOs). Click here to get your free copy right away...

Moving on to the news from IT sector. As per an article in a leading financial daily, Wipro Consumer Care and Lighting, part of the Wipro, is buying 100% of Zhongshan Ma Er Daily Products Limited. It is a Chinese Fast Moving Consumer Goods (FMCG) company.

Reportedly, the acquisition will see Wipro's consumer care arm buy the entire stake of shower and bath goods maker Zhongshan Ma Er Daily Products. Post-acquisition, Wipro Unza, the South East Asian arm of Wipro Consumer Care and Lighting, will touch an annual run rate of close to RMB 1 billon. However, the transaction is subject to regulatory approvals.

Recently, Wipro's FMCG arm also bought Singapore's skin care brand Bio-essence. Apparently, the latest move highlights the foray it has made recently into one of the world's most sizable and evolving consumer markets. Simultaneously, it has also expanded its portfolio in India by acquiring brands such as Glucovita, Chandrika, Aramusk and North-West Switches.

For Wipro's consumer segment, overseas markets constitute about 51% of its total sales currently. The figure is expected to touch 55% with the recent acquisition, the reports noted.

Going forward, whether Wipro continue to expand its footprint into other emerging markets overseas through mergers and acquisitions will be the key thing to watch out for.

Wipro was trading down by 0.3% at the time of writing.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "FMCG & Banking Stocks Underperform". Click here!


Views on News

Mazagon Dock Shipbuilders IPO: Should You Apply? (IPO)

Sep 29, 2020

Should you bet on this public sector defence shipbuilder?

More Views on News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Make Rs 5,000 Per Day Trading the Market (Fast Profits Daily)

Feb 25, 2021

In this video, I'll show you how to get started on the path to daily trading profits.

The Hidden Tesla in My Great Indian Wealth Project (Profit Hunter)

Feb 23, 2021

An Indian company founded three decades ago in a garage caught my attention...

Gold 65,000 and Silver 84,000 in 2022

Feb 26, 2021

In this episode of the Investor Hour, India's #1 trader, Vijay Bhambwani, talks to us about the stock market, his new targets for gold and silver, the best long-term investment opportunity, and a lot more.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Mar 5, 2021 (Close)